guysBefore we all quickly jump to the view that a CR is...

guys

Before we all quickly jump to the view that a CR is negative, I think it's important to consider the reason for it.

CR can be good or bad depending on what the funds are used for. In more common situations for early stage businesses, especially for those in the minerals space, the taboo of CR is because they are more commonly done to continue exploration activities (geo/drilling/assays/ etc) with no clear outcome of where the business is going (prospecting), so the tangible result is pure dilution. However, in AGY's case, we are past that point and are on the verge of commercial production and revenue derivation. As such, the more important way to view this is not a CR at face value, but the key to unlock the company's potential that has been held back for a while without Stg 2 funds.

In my opinion, I am happy we now have a funding solution (if it is indeed for Stg 2 plant construction).

To address a few posts made this morning:

- As @Jezzaaa mentioned, capital raising has a 'double-entry' principle impact on the business. Yes there is dilution on the equity front, but this is matched by an equivalent increase in assets be it cash now, or a fully producing Stg 2 plant later. On paper, our value per share technically won't change, if anything it increases due to the potential unlocked for commercial production in the future. I note however that yes the market isn't always rational and this may not be reflected in the SP (could go up, down or stay stagnant).

- Yes this outcome is not consistent to what has been communicated by management in the past year. However, my guess is that the options available were not suitable for the company or shareholders. A CR now is naturally a better option than a CR 12 months ago, as our SP has played a little catch-up in the past month or so lessening the impact of dilution.

- As a poster mentioned, our last 10 day or so VWAP is close to the 17.5c mark. As such, if worst case it is at a discount, it should be around our current SP. You will note the discount applied for LKE, VUL and CXO recently. As I type, at last LKE and VUL share price has benefited from the CR announcement as holders there realise the true benefit of now having funds. No reason it won't be the same here.

Further, depending on the specifics of the CR, don't forget there's still a couple of million that can be raised if SP becomes in the money due to options. I'm sure this was considered in undertaking this CR.

Overall, I don't know anymore than what has been announced so far, but I'm relieved we potentially now actually have a funding solution. Once we are producing in 12-18 months time, I don't think many will look back and be bothered stg 2 was funded via CR. As another poster said, ST holders may not like the news, but this is indeed great news for LT holders.

Let's wait and see what the terms and purpose of the CR are before we pass judgement.

Good luck all.